Shares of electric vehicle (EV) behemoth Tesla (NASDAQ:TSLA) experienced a remarkable surge of 6% during premarket trading on Monday following the release of its second-quarter delivery figures, which surpassed Wall Street consensus estimates. The automaker's strategic price cuts played a pivotal role in this outstanding performance.
In Q2, Tesla delivered a staggering 466,000 vehicles, surpassing Wall Street's projected figure of 448,350 deliveries. The company's production numbers were equally impressive, with nearly 480,000 vehicles manufactured during the quarter.
The Model 3/Y witnessed robust production and deliveries, reaching 460,211 and 446,915 units, respectively. Meanwhile, the Model S/X achieved production and delivery figures of 19,489 and 19,225 units, respectively.
Analysts at Wedbush weighed in on the report, asserting that the positive outcome would send pessimistic investors into a state of hibernation. They attributed the success to price cuts implemented earlier in the year, leading to strong demand and enhanced production efficiencies. Consequently, the analysts remain confident that Tesla is well on track to achieve its ambitious 1.8-million-unit delivery target for the year. Moreover, they expect the company's profit margins to experience a short-term decline, followed by a rebound in FY24.
Reiterating their Outperform rating and a $300 price target on the stock, Wedbush analysts highlighted Tesla's diverse strengths. These include the recently launched supercharger network OEM deals, the flourishing energy business, AI-driven autonomous technology, a market-leading battery ecosystem, and an ever-expanding global production scale.
Goldman Sachs analysts echoed the sentiment, applauding Tesla for delivering a strong report. The company managed to surpass both consensus and GS estimates, even as they anticipated a relatively modest increase in June vehicle deliveries due to Tesla's transition towards a more balanced delivery schedule throughout the quarter. However, the company's final performance proved to be more robust than expected, exceeding both consensus and analysts' predictions.
